The XRP Ledger (XRPL) is undergoing a significant transformation in early 2026, expanding its core functionality beyond payments and settlement into new decentralized finance (DeFi) applications. A key development is the launch of the Axiom prediction market platform, scheduled for beta release on January 19, 2026. Unlike many DeFi projects, Axiom will not launch a separate native token. Instead, it will operate using XRP and Ripple's RLUSD stablecoin as its sole trading assets, directly embedding this new utility into XRPL's existing economic structure.
This integration is part of a broader structural shift for XRPL. Network activity has surged, with daily on-chain transactions reaching 1.45 million on January 16, 2026, one of the highest levels in its history. This reflects growing experimentation with non-payment use cases. Axiom will operate on the XRPL EVM Sidechain, utilizing supporting infrastructure like Axelar and SquidRouter for bridging, allowing users to access smart contract functionality while maintaining access to XRP-native liquidity.
Concurrently, the ecosystem is preparing for a major institutional-grade development. The proposed XRPL Lending Protocol, designed by Ripple engineers, is scheduled for a community vote later in January 2026. The protocol introduces Single Asset Vaults for risk isolation and is built for fixed-term, underwritten credit explicitly aimed at institutional users, supporting XRP and RLUSD.
Liquidity remains a central focus, with the community targeting 11.56 million XRP allocated to the network's native automated market maker (AMM) system to support expanding DeFi use cases. Furthermore, the broader "XRPFi" strategy is taking shape, with wrapped XRP products like FXRP being introduced on external platforms such as Hyperliquid to connect XRPL liquidity with other DeFi ecosystems.
Industry figures are taking note of this evolution. Steven McClurg, CEO of Canary Capital, described XRPL as a leading infrastructure for real-world asset (RWA) tokenization. Analysts at Standard Chartered have set an $8 price target for XRP by the end of 2026, contingent on sustained institutional adoption and regulatory clarity, pointing to the pending U.S. CLARITY Act entering Senate markup in late January as a key catalyst.
